• A US jobs report revealed that pay growth slowed in December.
• The US economy generated jobs at a steady pace in December.
• The key interest rates of the European Central Bank might soon reach their peak. 

Today’s EUR/USD forecast is bullish as the pair extends Friday’s gains. The Euro gained on Friday after a major US jobs report revealed that wage growth slowed in December, boosting investor wagers that inflation is easing. The Federal Reserve does not need to be as aggressive as some had feared.

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The labor market remained tight, and the US economy generated jobs at a steady pace in December, sending the unemployment rate back to a pre-pandemic low of 3.5%. Meanwhile, average hourly wages increased by 4.6% from a year earlier in December, down from 4.8% in November.

According to Mario Centeno, a member of the ECB Governing Council, the key interest rates of the European Central Bank should soon reach their peak amid attempts to reduce inflation. This is assuming no new external shocks materialize.

He declared at a conference that interest rates would go up until the European Central Bank (ECB) believed inflation could be lowered to its medium-term aim of 2% “as quickly as possible.

According to Eurostat figures released on Friday, annual consumer price growth in the eurozone slowed to 9.2% in December from 10.1% in November, falling short of the 9.7% expectation in a Reuters poll.

The four-month low rating was welcomed by Centeno, who highlighted a considerable slowdown in Germany. The ECB predicted that average inflation would gradually drop but would only reach its target in three years.

EUR/USD key events today

There won’t be any key news releases from the eurozone or the United States. Therefore, investors will keep digesting Friday’s releases.

EUR/USD technical forecast: Aiming at 1.0701 resistance

The 4-hour chart shows EUR/USD in a steep bullish move that has broken above the 1.0550 and the 1.0625 resistance levels. This move has also broken above the 30-SMA, with the RSI pushing above 50. This is a sign of a sentimental shift from bearish to bullish.

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If bulls keep this pace, the price will likely hit the next resistance level at 1.0701. This bullish move will continue if the price stays above the 30-SMA.

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A US jobs report revealed that pay growth slowed in December. The US economy generated jobs at a steady pace in December. The key interest rates of the European Central Bank might soon reach their peak.  Today’s EUR/USD forecast is bullish as the pair extends Friday’s gains. The Euro gained on Friday after a major US jobs report revealed that wage growth slowed in December, boosting investor wagers that inflation is easing. The Federal Reserve does not need to be as aggressive as some had feared. -Are you interested in learning more about forex robots? Check our detailed guide- The…